Protecting your rights under the Nova Scotia Matrimonial Property Act

If you have rights to a property in Nova Scotia, usually by way of the Matrimonial Property Act, but you are not an official owner on title to the property, the owner of the property must get your consent before they can sell or encumber it (like a mortgage or line of credit). In almost all of these circumstances, you will have to sign the legal paperwork as the ‘Releasor’, meaning you are releasing your right to prevent the property from being sold or encumbered.

Releasor required to get Independent Legal Advice

Because the banks have to protect themselves, they will very often require the ‘Releasor’ to discuss the situation with a lawyer. The bank wants to make sure they have done their due diligence in ensuring the ‘Releasor’ understood their rights prior to signing the documents. They also want to do their part to ensure there is no undue influence.

Lawyer will produce Certificate of Legal Advice

When you meet with the lawyer, which in Nova Scotia may be via phone or video conference, the lawyer will explain what your rights are and answer any questions you may have. They will then produce a certificate for the bank confirming that they did meet with you and that you understood your rights.

In some cases, the bank will also require you to sign the sale or mortgage documents with your independent legal advice lawyer. If that is the case, you will have to meet with the lawyer in person.

Separation Agreement may also be required

If the property is being sold as a result of a relationship breakdown, the bank may also require a formal separation agreement that clearly addresses how the assets and debts of the relationship are being divided. You will also most likely want to clarify how any proceeds of the sale will be distributed by the real estate lawyer. (Is all of the profit going to one party? Is it to be split equally?) If you have not yet determined how the profits will be divided (or how the debts of the relationship will be paid), it is advisable to speak to a lawyer to understand your rights before you sell the property.

 By: Briana C. O’Grady - Lawyer

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If you have any questions about Independent Legal Advice you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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